Texas Pacific Land Corporation (TPL) Earnings Call Transcripts

Texas Pacific Land Corporation's Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Texas Pacific Land Corporation (TPL) reported record revenues of approximately $246 million, a 31% increase year-over-year, alongside a net income that reflects strong operational performance. The company achieved significant milestones in oil and gas royalty production, averaging 39,700 barrels of oil equivalent per day, marking a 20% year-over-year increase. Management reaffirmed its fiscal year capital expenditure guidance of $65 million to $75 million, indicating continued investment in growth initiatives, particularly in water desalination and data center infrastructure.

Reported metrics

Guidance from management

Management reaffirmed its fiscal year capital expenditure guidance of $65 million to $75 million, indicating a commitment to ongoing investment in growth initiatives.

What management said

Well, we've got price escalators built in our existing contracts. And I think pore space will become more valuable over time. I would say the one caveat is transportation royalties are typically a little less than an actual pore space injection royalty. And so as that mix changes, you should see that royalty kind of stay steady to increasing over time.

Yes. Like I said, that's one that we've been working on for a while. We're a year into diligence. We're working with Bolt to develop that project. We've already started working with the local communities there on tax abatements and other things that are kind of like the tail end of the diligence process. So that's one that I would be very disappointed if we don't have a definitive agreement to announce in the very ne...

What analysts pressed on

Analysts expressed concerns regarding the decline in water sales volumes and the impact of low natural gas prices on development activities. There were also questions about the potential for future acquisitions and the pace at which new revenue streams from the recent land acquisition could materialize.

Main topics on the call

• Record Revenue and Free Cash Flow — TPL generated record quarterly total revenue of approximately $246 million, which is a 31% increase year-over-year. Free cash flow also reached $156 million, up 20% year-over-year, highlighting the company's strong cash ...
• Oil and Gas Royalty Production Growth — Oil and gas royalty production averaged 39,700 barrels of oil equivalent per day, up 20% year-over-year. Management noted, 'Our unhedged royalty position allowed us to benefit fully from the strong oil price environment....
• Water Sales Volumes Decline — Water sales volumes decreased by 19% sequentially, although they increased by 38% year-over-year. Management attributed this to 'weak in-basin natural gas prices' affecting development in the Delaware Basin.
• Desalination Facility Progress — The company completed construction on its desalination facility in Orla, Texas, which is expected to ramp up to a capacity of 10,000 barrels per day. Management expressed optimism, stating, 'Our belief that beneficial re...

Read the full Texas Pacific Land Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 22 Texas Pacific Land Corporation earnings call transcripts on record, spanning May 7, 2021 to August 6, 2026. Based on this history, Texas Pacific Land Corporation reports quarterly. The most recent call on file is dated August 6, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

TPL

Exchange

NYSE

Country

US

Sector

Energy

Industry

Oil, Gas and Consumable Fuels

Calls on record

22

First call

May 7, 2021

Most recent

August 6, 2026

Reporting cadence

quarterly